This paper analyzes the mobility of low income mothers in Australia between two groups of governmental transfer payments: Income support payments (IS) and Family Payments (FP, non-income support payments) only. While IS payments are to provide a subsistence of living for her, FP payments are to help low-medium income families with the costs of dependent children. We use a dynamic multinomial logit panel data model with random effects, explaining the reliance of each individual on the income support system during each quarter between 1997 and 2000. The data is drawn from the FaCS 1% Longitudinal Data Set (LDS), a sample of fortnightly administrative records of welfare payments in Australia. We find that both state dependence and unobserved heterogeneity play significant roles. We also find that single mothers and females with partners on income support payments are much more likely to be on income support than otherwise.

en_US

dc.language.iso

eng

en_US

dc.publisher

en_US

dc.relation.ispartofseries

IZA Discussion paper series 1047

en_US

dc.subject.jel

C23

en_US

dc.subject.jel

P36

en_US

dc.subject.jel

I38

en_US

dc.subject.jel

C25

en_US

dc.subject.ddc

330

en_US

dc.subject.keyword

mobility

en_US

dc.subject.keyword

panel data

en_US

dc.subject.keyword

welfare reliance

en_US

dc.subject.keyword

females

en_US

dc.subject.stw

Mütter

en_US

dc.subject.stw

Sozialhilfeempfänger

en_US

dc.subject.stw

Familienleistungsausgleich

en_US

dc.subject.stw

Berufliche Integration

en_US

dc.subject.stw

Frauen

en_US

dc.subject.stw

Schätzung

en_US

dc.subject.stw

Australien

en_US

dc.title

Transition Patterns for the Welfare Reliance of Low Income Mothers in Australia